Strategy note
Solutions/the-enduring-portfolio-solution/
Based on our research spanning more than 40 years of historical data, we understand how different assets perform during varying stages of the economic cycle. The Enduring Portfolio Solution starts with a carefully chosen strategic mix of asset classes, and then dynamically adjusts asset class exposure for each stage of the economic cycle. The model would have provided close to a 50% improvement in risk adjusted returns over the 60/40 benchmark.
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Solutions
Solutions/our-solutions/
Our research efforts are focused on designing solutions that will outperform their respective benchmarks over the long term on a risk-adjusted basis, while delivering steady and stable growth. We derive our edge from a number of key intellectual ideas and methodologies that we have developed with respect to understanding and measuring economic and valuation concepts. Our models are all quantitative and rules based. They are built and tested with data that spans decades and are designed for long term investors who wish to take a more active approach as compared to a passive index solution.
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Research
Research/asset-allocation-thinking/
There is significant evidence and consensus among experts, that it is very difficult to outperform the market consistently. Therefore one should just hold a balanced portfolio of low cost ETF’s that are non-correlated and perform well in different environments. While we do not think this is bad advice (diversification and low fees are important), we differ on two key items:
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Solutions
Solutions/solutions/
In addition to our XiAlpha Solutions, we offer a range of solutions from long term retirement planning solutions to theme specific stock solutions. All of our solutions are based on our own proprietary research. We only showcase solutions where we believe we have a unique edge or approach to a particular strategy. For each solution we lay out the basic concept, what we do, and what you get. Some of our solutions will direct you to individual product websites for more comprehensive details. Please feel free to explore our solutions. Our fees differ for each solution; all of them carry a flat 1% management fee, and some of them include a performance based fee in addition to the 1% flat fee.
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Solutions
Solutions/xialpha-market-timing-solution/
The first step in a market timing model is to avoid, or capture through short exposure, the large drawdown periods which have historically comprised about 15%-20% of the days. This is the biggest alpha contributor over the long term. We have a few simple quantitative rules that would have accomplished this objective over the past 48 years, on average, without foregoing the upside in the good years.
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Planetary Alpha
Planetary Alpha/process/broad-global-allocation-solution/
According to MSCI, the global equity opportunity set is becoming the benchmark or starting point for asset allocation among institutional investors. This model is based on the MSCI AWCI index of 23 developed and 23 emerging country indices, cap weighted. It represents in excess of 85% of the global equity opportunity set.
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Planetary Alpha
Planetary Alpha/process/tactical-factor-rotation-model/
Research shows that the majority of a portfolio’s returns can be explained by a handful of factors; the market, size, style, sector and momentum. Individual stock picking accounts for only a small percentage. Our Tactical Factor Rotation model efficiently captures returns to these factors by:
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Planetary Alpha
Planetary Alpha/process/ex-us-developed-country-solutions-2/
These models are based on the MSCI EAFE index of non-US developed country indices. There are 21 countries in the EAFE index of which we use 20. We have developed a solution which has been able to significantly differentiate performance between countries over a one to two year horizon. The model ranks countries based on a combination of macroeconomic, fundamental and momentum factors. There is a consistent and sequential relationship between our model rankings and country performance.
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Planetary Alpha
Planetary Alpha/process/emerging-markets-solutions/
These models are based on the MSCI EM Index of Emerging Markets country indices. There are 23 countries in the EAFE Index of which we use 20. We have developed a solution which has been able to differentiate performance between countries over a one to two year horizon. The model ranks countries based on a combination of macroeconomic, fundamental and momentum factors. There is a consistent and sequential relationship between our model rankings and country performance.
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Planetary Alpha
Planetary Alpha/process/one-stop-global-equity-solutions/
Our One-Stop Solutions are designed for investors who want a simple solution to their global equity allocation, that leverages the combined research from all of our upstream models.
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Solutions
Solutions/bond-income-enhancement-solution/
One of the biggest challenges facing investors of retirement age, with typically bond heavy portfolios, is the current low yields that bonds provide. In addition, heavily weighted bond portfolios are subject to significant risk of capital loss in the event of a transition to a rising interest rate environment.
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Solutions
Solutions/aggressive-yield-seeker-solution/
When negative investor sentiment dominates price action and becomes irrational, fundamental valuations often become overlooked, resulting in attractive investment opportunities to buy good companies at cheap prices. However, rather than buying these companies, we sell put option premium on them to generate attractive yields and a worst case scenario of owning the stocks at a price which is 20% lower than are willing to pay for them today.
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Solutions
Solutions/home-saver-solution/
Designed specifically for millennials who are saving toward owning a home within a 7 to 10 year horizon.
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Solutions
Solutions/long-term-retirement-planning-solution/
Most retirement portfolios are passively indexed portfolios which are re-balanced on a calendar basis. The key reason for staying with a passively managed portfolio is the consensus that investors are generally better off not trying to time the market.
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Firm
Firm/about-us/
Providing self-directed investors with research intensive, active solutions, for global equity investing at the country/index level. All solutions are quantitative, rules based, non-discretionary strategies designed to outperform their benchmarks.
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Accounts
Accounts/getting-started/
We have tried to make the on-boarding process as seamless as possible.
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Accounts
Accounts/faq/
We provide investors with a variety of global equity investment strategies developed by us, in a separately managed account format. We do not offer financial planning, accounting or tax advice.
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Accounts
Accounts/managed-accounts/
We offer access to our strategies in the form of separately managed accounts. Accounts managed by us are carried and cleared by Interactive Brokers LLC . Currently we offer our strategies only through Interactive Brokers. We do not take custody of client funds. All clients mainta
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Accounts
Accounts/portfolio-margin/
If you are considering investing in our more sophisticated solutions that entail short selling, your account will need to be approved for margin trading. Most investors are familiar with RegT margin requirements which has been the traditional method of calculating margin requirements for decades. Under RegT, margin requirements are determined on a position by position basis. Portfolio margin looks at the total portfolio risk, taking into consideration hedged and offsetting positions, and thus better aligns margin requirements with the actual risk of the portfolio. This section is designed to give you a better understanding of how portfolio margin works.
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Accounts
Accounts/fa/
If you live outside of the larger economy countries like the US, Japan, China or Germany, your country's market represents less than 5% of the global market opportunity set. If you are heavily exposed to equities or bonds in your home country, or your job is heavily dependent on the local economy, you should consider the benefits of diversifying your economic and currency exposure. Investors in countries like Brazil, South Africa and Russia who have seen the value of their currencies depreciate in real terms, would have benefited greatly by having part of their portfolio invested in a globally diversified portfolio - in US dollars.
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